FDIC Reports 10 Scams Targeting Banking Customers- Part 1

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By Dave Wall

The holiday season is upon us once more in Milford and Stratford, and we’d be willing to bet that you’re one of the millions of Americans that has already helped to make the 2017 holiday shopping season a record-setter. But in the flurry of transactions and the general chaos that is the holiday season, it can be difficult to stick to financial security best practices.

However, according to the FDIC, it’s now more important than ever.

In a recent report, the FDIC issued a list of 10 scams being perpetrated today by con-artists looking to empty bank accounts, steal financial data and ruin much more than your holiday.

In this series, we’ll take a deeper look at the list so that you can stay on alert through the holidays and throughout the rest of the year, too.

  1. Government Imposter Frauds: If you get a call, an email or letter from a government agency requesting that you make an immediate payment or provide personally identifiable information (PII) on the spot, you’re the target of a government imposter. Government agencies will never ask for PII or a payment in the moment.
  2. Debt Collection Scams: Criminals will often pose as debt collectors or law enforcement officers in an attempt to shake down unsuspecting individuals who may already be having a tough time dealing with debt. If the individual cannot produce records, or threatens violence or arrest, you will know that it is not a legitimate claim.
  3. Fraudulent Job Offers: Background checks are part of many legitimate job offers. But some con artists are now using online classified ads to draw in job seekers with cryptic promises of employment. They’ll request personal information to conduct what they claim is a background check, when in reality they’re using the information to steal your identity. You’ll have to do your due diligence when looking for employers, so be sure to gather all the facts about a company before you comply with a background check.
  4. Phishing Emails: Phishing emails use spoofing software to mimic the email address of your contacts. They will then disseminate an email—typically with malware embedded within a link in the body of the text—in the hopes that someone will click the attachment. This will then give the hacker remote access to your device, helping them to find your financial records and PII.
  5. Mortgage Foreclosure Rescue: There are plenty of homeowners out there having a hard time making ends meet. But if you’re approached by a loan broker or consultant with an offer that sounds too good to be true, it probably is. They’ll promise you anything in exchange for a down payment or personal information, but in many cases victims end up getting foreclosed on anyway. In other cases, victims are even tricked into signing away ownership of their property to the scammer.

To learn more about how to follow financial security best practices, stop by a Milford Bank office location in Milford or Stratford, or check out our Online Learning Center here. And be sure to keep watch for Part 2 of this series, when we’ll be delving into the FDIC’s remaining 5 scams targeting banking customers today.

Baby Boomer Retirement Challenges, Part 2: Strategies for Success

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By Sindy Berkowitz

Every day, roughly 10,000 Baby Boomers retire. But many of them do so unaware of the challenges they will face when living off their savings alone. The Insured Retirement Institute recently found that the average American will enter retirement with an income gap ranging from $3,864 and $12,072. Such a disparity is unsustainable, and even if it doesn’t disrupt your lifestyle now, it is likely to do so in your later years when you’re less capable of addressing the problem.

In Part 1 of this series we addressed some of the core challenges facing American retirees today. In Part 2, we’ll take a look at some ways that you can alleviate your retirement concerns.

Consult with a financial advisor: Retirement planning is a big job, and it can be difficult to have the knowledge and experience necessary to go it alone when trying to maximize your wealth to meet your retirement objectives. A financial advisor can help you get the proper context, help you shape a budget, and offer great advice to help you plan effectively.

Take advantage of employer benefits: If your company offers a pension plan or retirement account benefit like a 401(k) or IRA, you should do everything you can to take advantage now—especially if your company matches contributions. After you retire, certain benefits may no longer be available to you. If all your retirement accounts are already fully funded, you have other options available. If you’re over 50 and just starting out, though, you may be eligible for catch-up contributions that offer higher contribution caps.

Put additional funds into an annuity: Annuities provide a guaranteed income stream for life, making them a good consideration for retirees. Annuities, unlike 401(k) or IRA accounts, do not have a maximum contribution limit, and have several other unique characteristics that set them apart from other retirement savings accounts.

Delay Social Security payouts: Retirees can begin collecting Social Security at age 62, but your monthly paycheck depends upon when you start collecting, and your full retirement age. Every year that you delay past your full retirement age increases your payout by 8 percent. So if two individuals with a full retirement age of 65, for instance, start collecting Social Security at 62 and 67 respectively, the individual who deferred payouts will see a 30 percent higher payout.

Asess your risk tolerance: All investment vehicles will come with a varying degree of risk. That’s why it’s important to diversify your holdings. That said, every individual has a different lifestyle, different goals and expectations for retirement. While some retirees want a more conservative, low-risk and assured income in retirement, others may find themselves looking to take a more aggressive approach to accumulating wealth post-career.

At The Milford Bank, we have been helping Milford and Stratford retirees develop successful saving strategies for generations. But Baby Boomers face unique challenges unlike those before them. To get started with a retirement strategy that will work for you, stop by a Milford Bank location today. You can also learn more by checking out our Online Learning Center.

Baby Boomer Retirement Planning, Part 1: The Challenge Ahead

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By Sindy Berkowitz

Earlier this year, the Insured Retirement Institute released its annual study covering the Baby Boomer generation and its financial preparedness for retirement. Since the IRI’s first publication in 2011, the number of Americans over the age of 65 has increased over 18 percent. Yet, despite the steady incline of retired Baby Boomers, this year’s study demonstrates that this generation still has yet to find answers to some of the greatest challenges facing Americans in retirement today. In fact, only 23 percent believe they have enough saved to last their entire retirement.

This series will dive deeper into the state of Baby Boomer retirement planning, providing insights into the unique challenges ahead for the average American retiree. In addition, we will offer several ways to help you start putting your planning on the right track to ensure that you and your loved ones can maintain the quality of life you’ve worked so hard to achieve.

In Part 1, we will take a closer look at some of the biggest challenges you’ve got to address in order to ensure that your wealth lasts a lifetime.

Inflation: The cost of everything, from a gallon of milk to real estate, is subject to inflation. On a yearly basis, you might not notice the incremental price increases, but over time, inflation will degrade your buying power. As funding a retirement account is a long-term savings strategy, you must factor inflation into your planning.

Market fluctuations: Investments tethered to the stock market can offer a strong return on investment, but they can also leave you more exposed to risk.  If the markets enter a period of decline as you reach retirement age, you may be forced to find other means to recover.

Medical expenses: Americans are, fortunately, living longer than ever. But that also means that retirees will likely have more medical expenses to account for as well. According to the IRI’s 2017 report, 82 percent of Baby Boomers underestimate the cost of medical expenses to come.

Income gap: Pension participation is not as common as it used to be, and Social Security will only account for a portion of the paycheck you received during your working days. Many Americans don’t realize that assured income streams may be lower than the monthly expenses they’ll see in retirement, setting them up for a gap in wages that must be recovered to maintain their lifestyle.

At The Milford Bank, we’ve helped countless individuals—from their first savings account, to retirement planning, and everything in between. We are ready to work with you to craft a saving strategy that will help you navigated the uncharted waters of retirement.

Be sure to check back next time for Part 2 of this series, when we’ll be discussing some strategies to help you avoid the challenges you face in retirement planning. You can also learn more by checking out our Online Learning Center here.

Talking Dollars, Cents and Sense about Flu Season

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By Lynda Mason

Living in New England, Milford and Stratford residents always have something special to look forward to at this time of year. We’ve got brilliant foliage in the Fall and picturesque, snowy landscapes in Winter. But there’s one seasonal event that nobody in New England is looking forward to: flu season.

While most of us consider the flu to be a minor inconvenience, the truth is that this seasonal contagion has a significant part to play for just about every family in the country.

According to the Centers for Disease Control, up to 20 percent of the U.S. population contracts influenza on an annual basis. So even if you’ve managed to steer clear, the chances are good that someone in your home will catch it—and it could cost you much more than a few boxes of tissues.

The CDC reports that flu cases cost $10.4 billion a year in direct medical expenses and $16.3 billion in lost earnings. Children, meanwhile, will miss an estimated 32 million days of school each year due to the flu.

Further, the flu leads to tens of thousands of hospitalizations, and worst of all, thousands of deaths caused by flu-like symptoms.

Looking at these figures makes it clear just how devastating the toll of influenza can be. Fortunately, there are plenty of simple steps you can take to ensure that you don’t contract, or spread, the flu this season.

Review the CDC’s updated influenza guidelines: Every year brings a new strain of influenza. This year is expected to be more virulent than the 2016 version, so it is important to stay informed. You can check out the CDC’s 2017-2018 flu season guide here.

Avoid doctor’s offices and hospitals: As a contagious virus, doctors’ offices and hospitals are natural vectors for the flu. There are good odds of encountering someone with the flu, or passing it to others, if you go to these facilities. For that reason, many individuals opt to act preemptively and get flu shots at retail pharmacies before they get sick. If you think you may have the flu, check with your PCP about their telehealth services so that a doctor can diagnose you over a videoconference instead.

Of course, every individual has different needs when it comes to flu shots, and you should consult with your physician to first see if it is the right decision for you or your family.

Practice good health habits: The flu, like any other germ, cannot thrive in a sterile environment. While the CDC does state that flu shots are the single most effective way to prevent flu, it also names a number of health-conscious choices you can make that will help you avoid contracting the virus. This includes: washing your hands, avoiding touching your eyes, nose or mouth, drinking lots of fluids, getting lots of sleep and eating nutritious meals.

At The Milford Bank, we believe that physical health and financial health go hand in hand. Taking care of your body will help you take care of your finances, so when it comes to flu season, we want to make sure our customers don’t end up spending the next few months in bed with a thermometer under their tongue and a ball of tissues in hand. To learn more ways to stay in good shape—both physically and financially—check out our Online Learning Center here.

Money Talks—How You Should, and Shouldn’t, Discuss Your Finances

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By Pat White

There are few things in life more uncomfortable than talking about finances. In fact, people are even seven times more likely to discuss their love life with a total stranger than they are their salary. Despite the difficulties we have with communicating about our money, it is nonetheless important to do so.

If you have children, it is imperative that they learn early how to respect and recognize the value of a dollar. Whether they just opened their first checking account or are saving up to buy a car, it’s up to you to guide them. The lessons you impart onto your children now will forge an indelible mark on their financial decision making processes for years to come.

Couples might find this topic a little more difficult. Each partner comes in with habits and strategies of their own already in place. In these cases, it isn’t necessarily a matter of educating the other partner, as with children. Instead, it’s a matter of having open and honest communications about where you stand now, where you want to end up, and how you’ll get there as a couple. This is as true for a middle-aged couple planning for retirement as it is for a couple that has just started dating.

Of course, when having these conversations, you should be mindful of the fact that it can be a touchy subject. In order to make sure the conversation is a productive one, consider the following tips on how you should, and shouldn’t talk about money.

Point the finger at yourself: In a partnership, both parties need to agree to a strategy—and stick to it. But what do you do when your partner strays from the plan? You wouldn’t necessarily be wrong to call their attention to it. But we’ve all made mistakes, and they might remind you of that fact. Such conversations can quickly escalate into finger-pointing, justification and hurt feelings. Instead, turn the attention onto yourself. Mention to them how you intend to curb your own overspending, or give an example of how you overcame a similar obstacle in the past. They’ll likely get the point without the feeling of being under attack.

Make it about the math: Numbers don’t lie. They’re objective, rational and provable. So why do difficult conversations about money quickly get overtaken by emotion? It’s when we stray from the numbers that our passion can get the better of us. When talking about money be sure to set aside any other grievances you may harbor and simply stick to the facts at hand.

Finding the middle ground: Currency only works because we all accept the value of money as a society. But that doesn’t exactly mean that everyone values money in the same way either. Some are happy to watch their savings account grow, while others would rather spend their paycheck right away. As such, you can’t assume to have all the answers when talking finances with others.  Appreciate their perspective as you’d hope they would do for you, and always be ready to find a compromise that meets the needs of you and your partner, family or business.

Talk in percentages: Calling attention to your finances can make those in different economic circumstances uncomfortable. In some social circles, it’s even considered a faux pas. In order to have an honest conversation without calling attention to your actual worth, speak in percentages. Rather than saying you’ll invest $20,000 into a Mutual Fund, say that you’re investing 20 percent of your assets instead. It keeps the conversation vague enough to be respectful, while open enough to be engaging and honest.

Of course, at The Milford Bank it’s our job to talk finances. We’ve heard it all before and are always ready to listen. If you’re ready to talk finances, stop by an office location in Milford or Stratford today. You can also find more valuable resources at our Online Learning Center.

 

Unlucky in Love? Your Credit Score—Not Your Game—May be to Blame

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By Trish Townsend

Based on the results of a recent Lending Tree survey, Americans are not paying close enough attention when it comes to their credit scores. The report revealed that 60 percent of people around the country do not know their own credit score.

On a day-to-day basis, you might not think it matters that much. But the reality is that your credit score impacts everything from the car you drive, where you live, and maybe even what you do for work.

If you’re still not convinced that you should be paying closer attention to your credit score, Discover Financial Services and Match Media Group—parent company of Tinder and other dating sites—just released new data that may be able to compel you after all.

In a study of 2,000 online daters, the joint study revealed that today’s dating pool places a high priority on the ability to manage money. Half of respondents claimed that having a good credit score was more attractive than having an impressive job. 58 percent said it was more attractive than having a nice car. 40 percent of respondents even said that a fit credit score was better than a fit body.

But why are today’s singles so drawn to individuals with high credit scores? It’s what the figure represents. 73 percent of survey respondents claimed that a good credit score suggested responsibility. Roughly 40 percent said it reflected a sense of trustworthiness and high intelligence, too.

Helen Fisher, the chief scientific adviser at Match.com and senior research fellow at the Kinsey Institute, put it in more academic terms, calling credit scores “honest indicators of who you really are,” as well as “Darwinian mechanisms for measuring your reproductive ability.”

While we may not be able to help you think up any one-liners to test when you go out to mingle on Saturday night, The Milford Bank is more than ready to help you take a closer look at how to improve your credit score. To learn more about how to set yourself up for sustained financial growth, stop by any office of The Milford Bank, or check out more resources at our Online Learning Center here.

 

New Poll Reflects Americans’ Preferred Long-Term Investment Strategies

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By Patty Gallagher

There is no one-size-fits-all solution when it comes to long-term investment planning. Every individual, and every family, has different needs and wants, expenses and assets. As such, it can be difficult to get the right context to help you make an informed decision that will suit your needs. And while you cannot make your financial decisions based on what works well for others, it certainly helps to understand how the rest of the community is choosing to plan for the long haul.

If you’re a Milford or Stratford resident thinking about where your assets would best serve your long-term savings strategy, consider the results from a recent Gallup poll which ranked Americans’ favored long-term investment vehicles.

Let’s take a closer look at the numbers:

Real Estate: According to the Gallup poll, Americans seem to have regained their confidence in the real estate market following the Great Recession of 2008. In the past six years, the percentage of poll respondents choosing real estate as their preferred long-term investment has climbed from 19 to 34 percent—making it the most popular of all poll choices.

Stocks and Mutual Funds: Similarly, consumer confidence in the stock market appears to have recovered from the Great Recession as well. Today, 26 percent of survey respondents cited that their go-to method for long-term savings was the stock market, up from just 17 percent in 2011.

Gold: Oftentimes, people will invest in precious metals like gold or silver when the stock market is turbulent and unpredictable. Such was the case following the Great Recession—in 2011, gold was by far the most popular long-term investment vehicle for survey respondents, with 34 percent making it their go-to option. But as the economy has rebounded, that number is now down to just 18 percent.

Savings Accounts and CDs: While the return on your investment won’t always be as high as with other vehicles, savings accounts and CDs present a conservative and guaranteed rate of return. Interest rates, however, have remained flat in the subsequent years following the Great Recession, which has resulted in little change in the popularity of these types of investments. In 2011, 14 percent of Gallup poll respondents cited savings accounts and CDs as their preferred long-term savings option. Today, that number still sits at 13 percent, largely unchanged.

Bonds: While all the other survey options mentioned in the Gallup poll all gained in favorability (besides gold), the one investment vehicle which lost ground was bonds. Bonds were more popular at the height of the Great Recession during less certain times, but now that the economy has leveled off, bonds have become less of a priority for a majority of Americans.

If you’re still uncertain about where your long-term savings should go, you’re not alone. Clearly, Americans’ saving preferences are varied and subject to change as their lives do. But there’s no reason to go it alone: The Milford Bank has been helping families save for their futures for generations. If you’re a Milford or Stratford resident looking to grow your retirement account, stop by an office location in your area today. You can also learn more by checking out our Online Learning Center.

With the Stock Market Surging, Should You Be Investing?

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By Celeste Lohrenz

Following a July 26th announcement from the Federal Reserve Chair Janet Yellen that the Fed would not be keeping interest rates unchanged through later this year at the least, the Dow Jones Industrial Average closed out that day at a new record high.

This caps off half a year of gains for the market, which has already seen an incredibly 25 record highs in 2017. And while investors might be doing well, many Americans are wary of putting their money into the stock market. In fact, half of Americans don’t have any of their money invested in stock or stock-based investments such as mutual funds.

While the stock market can be more risky than other investment vehicles, there is clearly opportunity given current market conditions. But it is necessary to assess your own needs, your financial limitations and your overall savings strategy before you dive in.

If you’re a Milford or Stratford resident wondering whether or not the time is right for you to invest in the stock market, here are several considerations that must factor in to your decision:

How much can you reasonably budget to invest?

The stock market is riskier than investments that guarantee a return. As such, you should not invest unless your budget allows for it. In figuring out what your budget will allow, ask yourself a simple question: how much can you stand to lose before your family’s quality of life is impacted? Answer that, and don’t exceed your limit.

Can you still find great deals in a bull market?

Those who invested prior to the market’s current hot streak will be reaping the rewards now. But eventually, there will be a correction. The market will always go up and down, so maximizing your return is simply a matter of timing. You may have missed the boat on some of the hot tech companies that have seen huge gains this year, but there are likely to be opportunities for companies and industries that have suppressed stock prices for one reason or another, and are due for a bigger close to the end of the year.

What is your overall investment strategy?

Because the stock market is a riskier investment, it is wise to mitigate your financial exposure by counterbalancing the rest of your portfolio with more conservative investments. You cannot ignore the importance of a simple savings account, but there are also plenty of other ways to put your money to work for you, from certificates of deposit to whole life insurance.

At The Milford Bank, we’ve been consulting customers on how to diversify their investments for generations. If you’re looking to learn more about how you maximize the value of your nest egg, stop by any office of The Milford Bank. You can also learn more by checking out our Online Learning Center here.

Survey Reveals Most Americans Have Financial Regrets

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by Patty Gallagher

Hey, Milford and Stratford residents—have you ever done something you regret with your money? Maybe there’s an expensive pair of shoes collecting dust in the corner of your closet. Or maybe you had an investment go belly up. Whatever your example is, remember this: you’re not alone.

In a new survey from Bankrate, it was revealed that 4 in 5 Americans has some form of financial regret. What were the most commonly reported causes for regret?

  1. Retirement Savings: Not saving enough for retirement was the leading financial regret of the 1,000 Bankrate survey respondents. 22 percent of those individuals cited not saving enough for a comfortable retirement.
  2. Emergency Savings: Similarly, a large percentage of people claimed they regretted saving enough for emergencies. At 16 percent, this was the second most common financial regret.
  3. Credit card debt: 9 percent of survey respondents claimed that they had regrets about the balance of their credit card. These individuals report carrying more credit card debt than their budgets can bare.
  4. Student loan debt: Student loan debt continues to be a national issue, which is clearly reflected in this survey. 9 percent of respondents claimed that they regretted the amount of debt they had to take on in order to get their college degree.
  5. Children’s education: While graduates continue to grapple with student loan debt, many parents are feeling regret themselves. 8 percent of respondents had regrets about the amount that they had saved for their child’s education.
  6. Buying a home: 2 percent of survey respondents claimed that they had regrets about buying a house that was too expensive for their budget.
  7. Something else: This is where the expensive shoes and bad investments come into play. 7 percent of survey respondents had regrets about a wide variety of other financial decisions they’d made.
  8. No regrets: One out of five respondents claimed that they had no financial regrets whatsoever. And while it is noble to live without regrets, the previous examples clearly demonstrate that financial decisions cannot be taken so lightly. The choices you make today will impact you for a lifetime. If you have a family, your financial regrets can seep over across generations. Take the example of education savings, for instance. If more parents had done a better job saving for their child’s education, it is likely that fewer graduates would report regrets about student loan debt.

But if you have your own financial regret, it is important not to let it define you. Every difficult financial situation can be addressed and improved with the right strategy and network of support behind you. At The Milford Bank, we offer a diverse portfolio of financial services to help you make the smartest decisions with your money, as well as an experienced team ready to help you meet your financial challenges head on. You can also learn more on our Online Learning Center, or stop by a branch location in Milford or Stratford today!

New Gallup Poll Provides Key Lessons for College Students

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By Patty Gallagher

With the school year almost over, many high school seniors in Milford and Stratford have already made the decision on if, and where, they’re going to attend college. While that decision itself can seem incredibly complex, it is really just the beginning of a long and challenging process that promises many more difficult decisions to come.

When it comes to making difficult decisions, one of the best things that an inexperienced person can do is look at the examples set by those before them. And based on findings from a recent Gallup poll, there are plenty of impediments that future students can avoid if they heed the advice of their predecessors.

The Gallup poll surveyed 90,000 Americans with college degrees. According to the results, 51 percent of respondents had regrets about one aspect of their educational experience. The most common response had to do with the field of study chosen by survey respondents. 36 percent stated that, if they could repeat their educational experience all over again, they would change their field of study.

28 percent, meanwhile, had second thoughts about the institution they selected to attend. 12 percent of graduates had regrets about the type of degree they completed, while over half of respondents said that at least one of the three choices applied to them.

There are many reasons to select a degree, a major and an institution. But students have to understand that they can’t think about this decision as just an 18-year old. They’ve also got to ask themselves whether or not their future self would make the same decision.

Clearly, a majority of American graduates can attest that the choices you make now will have a lasting impact longer after you’ve graduated. As such, it is critical that students take a comprehensive approach to making these selections. They need to strike a balance between what they hope to achieve, and what they can reasonably afford without succumbing to overwhelming student debts.

If you’re a Milford or Stratford parent with a student heading to college this fall, be sure to speak with your child about their vision for the next four years and beyond. It can also be helpful to leverage resources at your child’s school, including counselors and teachers.

You also stand to benefit from stopping by any office of The Milford Bank. Our friendly and experienced staff can provide a wealth of educational resources designed to help you and your child take the guesswork out of the college process. By putting in the work to educate yourself on the college process, you’ll be able to put your education to work for you without regrets.

Check back on our blog from time to time to catch the latest tips and tricks for getting the most out of your education, or learn more by checking out free resources on our Online Learning Center.